Case study

SGB-Bank S.A. Pioneers the Implementation of AT1 Capital Instrument in Poland, Securing PFSA Clearance

The changes do not surprise us
They challenge

The Client

SGB-Bank S.A., serving as the associating bank in the Cooperative Banking Group, plays a crucial role in advancing the goals of the SGB Cooperative Banks. Functioning with a commitment to partnership, dialogue, and amicable relationships, SGB-Bank S.A. focuses on delivering modern and secure financial solutions tailored to the needs of local communities.


Financial Market Law

The challenge

The strategic objective of our client, SGB-Bank S.A., within the Cooperative Banking Group, was to leverage recent developments in banking law, specifically the classification of AT1 instruments as the bank’s own funds. This initiative aimed at enhancing the MREL-TEM and financial leverage ratios. The challenge was substantial, involving the drafting of agreements and rules aligned with the new legislation governing the application of AT1 instruments, effective in Poland from 01 October 2023.

The Result

This pioneering project was successfully completed in the Polish financial market.

We have obtained a PFSA clearance to classify AT1 capital instruments as Bank’s own funds.

This accomplishment significantly bolsters the Bank’s own funds and improves the financial leverage and MREL-TEM (the minimum requirement for own funds and eligible liabilities) ratios.

Our contribution to the growth and development of the bank resonates in the improved offering of modern products available to clients

Limitations raise questions. We provide answers.